The GBP/USD pair fell during the session on Tuesday, but found enough strength to bounce back and form a bit of a hammer. This is normally a very strong sign, but will we would be concerned about is the fact that the 1.50 level is just above. In other words, we don’t think that any bounce from this level will have enough room to run significantly. With that being the case, we think this is a “sell the rallies” type of market. As far as buying is concerned, we would need to see the market move above 1.5 to in order to consider that. Alternately, if we managed to break the bottom of the hammer this of course has a selling as well.
Written by FX Empire